Asia stocks, Wall St futures edge up; China trims repo rate

Tokyo’s Nikkei was shut but futures were trading at 38,530 compared to a cash close of 37,723. The index rallied 3.1% last week as the yen eased from its highs and the Bank of Japan (BOJ) signalled it was in no rush to tighten policy further.

EUROSTOXX 50 futures added 0.3% and FTSE futures 0.1%.

We note that initiating a cycle with a 50bp move without an imminent financial crisis or jobs actually being lost is quite unusual for the Fed,” he added. “We thus think the step reveals the Fed’s determination to avoid a deterioration in labour market conditions, or, in market jargon: to achieve a soft landing.”

The Swiss National Bank meets Thursday and markets are fully priced for a quarter-point cut to 1.0%, with a 41% chance it will ease by 50 basis points.

Investors were also keeping a wary eye on negotiations to avoid a U.S. government shut down with just days before the current $1.2 trillion in funding runs out on Sept. 30. Republican U.S. House of Representatives Speaker Mike Johnson on Sunday proposed a three-month stopgap funding bill but now it has to go to vote.

The U.S. rate cut combined with lower bond yields helped keep gold up at $2,620 an ounce, just off an all-time peak of $2,625,59. [GOL/]

Oil prices firmed further, having rallied around 4% last week on hopes lower borrowing costs would support global economic growth and demand. [O/R]